European Stars and Stripes (Newspaper) - June 29, 1990, Darmstadt, Hesse                                Friday june 29, 1990 the stars and stripes a a a Page 3democrats Issue budget deficit plan cuts in benefits would save billions Washington apr democrats responding to president Bush a endorsement of possible tax increases offered a plan wednesday to Cut billions of dollars in Benefit programs such As social Security and to raise taxes paid by some people covered by the retirement program. Republican congressional leaders meanwhile faced a budding rebellion Over Bush a tax turnabout. White House and congressional negotiators searching for ways to Cut the 1991 Federal deficit began discussing proposals in Earnest a Day after Bush said tax Revenue increases Are needed As part of a plan to Cut the deficit. Democrats citing Bush a Concession offered a plan that one participant speaking on condition of anonymity said totalled $5.6 billion in savings. Negotiators Are seeking $45 billion to $60 billion in new taxes and spending cuts for fiscal year 1991, which starts oct. 1. Another official also requesting anonymity said the options came to $10 billion. The official said one element was a three month delay in Cost of living increases for Benefit programs for which people qualify automatically such As social Security pensions for retired workers. Under that plan the annual Cost of living boosts would be delayed from Jan. 1 to april 1 for a savings of $3 billion. The official said the suggestion for delaying Cost of living adjustments ran into objections from sen. Pete Domenici r-n.m., and House ways and Means committee chairman Dan Rostenkowski Dill. Rostenkowski said the political consequences of such a delay would be a death a the official said. Sen. James Sasser d-tenn., said the democratic package included reductions in medicare and Federal employee Benefit programs. Sasser also said the plan would increase from 50 percent to 85 percent the amount of social Security benefits subject to Federal taxes for couples whose incomes exceed $32,000 annually. The tax boost would raise $3.1 billion next year. A a we re trying to be evenhanded about it tit for Tat a said Sasser. A a they re talking about taxes and we re talking about reducing entitlements a the bureaucratic term for Benefit programs. House majority Leader Richard Gephardt d-mo., said the negotiators generally agreed that their goal should be to achieve a balanced budget by 1995. The rep. Leon Panetta d-calif., left talks to House majority Leader Richard Gephardt d-mo., before the Start of the budget Summit wednesday. Gramm Rudman Law requires the deficit to be eliminated by 1993, a goal that virtually everyone in Washington believes cannot be achieved. A a it a fair to assume. The targets Are going to be changed a Domenici said of the series of declining annual deficit goals set by Gramm Rudman. In seven weeks of meetings Only one proposal had been advanced a $51 billion deficit reduction package offered last week by White House budget director Richard Darman. It was quickly dismissed by democrats As insufficient. But Domenici said after emerging from the wednesday morning session of closed door bargaining a the whole Tenor has changed. It is very determined. It does no to seem to be As acrimonious. Its a How do we get there a a some other republicans not part of the negotiations did no to feel that Way. A the president May Well go into a Back room somewhere and sign off on this Deal but republicans Haven to said rep. Bob Walker r-pa., who led a letter writing Campaign in the House against any tax increase. Negotiators said there was no attempt during wednesday mornings meeting to learn what taxes Bush was referring to. But outside the Capitol meeting room where negotiators met democrats and republicans grappled Tor political advantage Over Bush a statement. The president said tuesday that spending cuts changes in the budget process and a Cut in the capital gains tax rate a which everyone agrees would increase revenues at least initially a were also required to shrink a budget Gap that could surpass $200 billion next year. Housing Secretary Jack Kemp told reporters that revenues can come from Many sources including a growing Economy new Federal fees or taxes on tobacco. A it certainly did no to violate in my View any pledge a Kemp said. But Many rank and file republicans Cipun Ting on the subject of taxes As a Campaign Issue against democrats were pained by Bush a Retreat from his Promise of a no new  sen. Trent Lott r-miss., collected the signatures of 12 of the Senate a 45 republicans on a letter saying the deficit must be controlled a through spending reductions and economic growth not through tax  on tuesday 90 of the 176 House republicans signed a similar note. Democratic leaders said they remained unconcerned about the petitions saying unhappy lawmakers might change their minds if tax increases were part of a solid deficit reduction package that included spending cuts. A a in a not going to write it off today a House speaker Thomas s. Foley d-wash., said of the prospects for passage of a budget Deal. Greek bases pact to be signed in Early july Athens Greece apr Greece and the United states Are expected to sign an eight year defense pact Early next month allowing . Bases to remain on greek soil. A the defense agreement Between Greece and the United states will probably be signed in Athens july 8,�?� government spokesman Vyron polydoras told journalists thursday. A the pact will probably be signed by greek foreign minister Antonis Samaras and . Defense Secretary Dick Cheney a polydoras added. A . Embassy source said that Cheney would be in Greece on july 8-10. The Accord came after 19 rounds of negotiations within the past two years and ends nearly a year of uncertainty Over the Fate of defense ties Between the two countries. But Premier Constantine i Tsitakis heading a conservative government elected last april pledged to maintain close defense links with the United states and the Western Alliance. There Are four . Military bases and about 20 smaller installations around the country. However the . Government has said two of the bases will be closed As part of a worldwide Cost cutting drive.. Lawmaker issues a Friendly warning to Israel Washington apr the Man in charge of americans foreign Aid spigot is warning Israel that he will support cutting its Aid next year if that government expands settlements in the occupied West Bank and Gaza strip. A if Israel expands their settlements in any Way or if they add a single new settlement i will make a Flat commitment to support any request made by the administration to reduce Aid to Israel in next years Bill a said rep. David obey a wis. The comments set him on a collision course with the newly installed right Wing israeli government which has promised to expand settlements in the territories seized in the 1967 six Day War. Obey issued the warning As the House approved a $15.7 billion Aid Bill for the year beginning oct. 1, which includes israelis customary $3 billion in military and economic Aid. That amount makes Israel the largest single recipient of . Largess. The Overall Bill represented what obey termed the Start of a gradual turn away from America s emphasis on military Aid to its friends and allies around the Globe and toward economic development and Trade. It Cut nearly $400 million president Bush had sought in military assistance and put the Money into Aid to Africa refugees children and Eastern Europe. As it worked through a pile of proposed amendments to the Bill the House also voted narrowly to preserve Bush a policy of not sending . Aid to International family planning groups linked to abortion and to keep non lethal Aid flowing to cambodians non communist resistance movement. Obey said he meant his comments on israeli settlement As a a very Friendly warning intended to head off developments that could further jeopardize peace in the unstable Region. He said the amount of any Aid Cut would be based on How much is spent on expanding present settlements or creating new ones. A Israel is a Sovereign nation and has the right to do anything they want. But the . Government has no obligation to fund either directly or indirectly settlements which we believe to be an impediment to the peace process a he said. On the population Issue the House voted 224 to 198 to Send $3 million through private groups for family planning and other health projects in Romania whose people have for decades been subject to a government policy against contraception. But the amendment offered by rep. Christopher Smith r-n.j., excluded two groups from participation a the United nations population fund and the International planned parenthood federation which participate in abortion counselling referral or services. The lawmakers also adopted 260 to 162, an amendment by rep. Stephen Solarz d-n.y., to provide $7 million in non lethal Aid to the coalition opposing cambodians vietnamese installed government. That replaced language in the Bill barring any Aid to the resistance movement a prohibition supported by members who feared Khmer Rouge dominance in the coalition. The Khmer Rouge ruled Cambodia in the 1970s and were responsible for the deaths of More than i million people in what became known As the killing  they Are the strongest military faction in the coalition